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Coverall Health-Based Cleaning System Franchise Cost & Fees

Date of Incorporation: 1985
Franchising Since: 1985
Headquarters: Deerfield Beach, Florida

Business Description: Coverall North America, Inc. is the franchisor. The franchisor offers and sells franchises in the commercial janitorial cleaning industry.

Franchise Offer: The franchisee will operate a commercial janitorial cleaning business utilizing the franchisor’s health-based cleaning system program. The franchisor offers and sells three types of franchises in the commercial janitorial cleaning industry. The three types of franchises are Janitorial Franchises, Service Franchises, also called Master Franchises, and Territory Franchises.

Financial Assistance: Below is summary of financial assistance offered by Coverall to franchisees:

Item Financed (Source) Amount Financed Down Payment Term
Initial Franchise Fee (Coverall) $10,500-$17,200 $3,000-$21,200 2 or 3 years
Equipment Purchases (Coverall) Up to 100% 0 % up to 100% Up to 24 months
Additional Business (Coverall) Negotiable; Up to 50% Negotiable; Up to 50% Up to 12 months
Bid and Negotiation Fee Up to 100% 0% up to 100% Up to 12 months

Training and Assistance: Coverall's current initial training program is mandatory for the person(s) who signs the Franchise Agreement or any designees approved by the franchisor in writing, and for transferees of the franchise. The employees of the franchisee, as approved by Coverall, may also attend training, pursuant to the franchisee’s request. The training program is conducted at one of Coverall’s Support Centers or other designated facility and/or in existing customer buildings, usually within commuting distance of the franchisee’s residence. The 40+ hour training program consists of classroom and on-site instruction on, among other things, cleaning techniques, customer service, and business management basics. It may take up to 8 weeks to complete the training program. The franchisee’s participation in non-mandatory additional training and seminars is strongly recommended. In addition, the franchisee may request additional instruction by telephone or personal consultation at no additional cost.

Territory: Due to the nature of the franchised business, franchisees will not receive an exclusive territory or exclusive territory rights. Franchisees may face competition from other Coverall franchisees. Coverall is not able to state the exact number of miles that the franchisee may have to travel to a customer. However, in the ordinary course of business, Coverall endeavors to offer the franchisee customers no more than a 30 mile radius from the franchise business.

Term of Agreement and Renewal: The length of the franchise term is 20 years. If the franchisee wishes to renew and has satisfy the contractual conditions for renewal, the franchisee must sign the then-current Janitorial Franchise Agreement, which may have materially different terms and conditions from the agreement that governed the original term.

Obligations and Restrictions: Coverall does not require that the franchisee personally supervise the business, but strongly recommend that the franchisee directly participate in its management, supervision, and operation. The operating manager/supervisor, if any, is not required to have an equity interest in the business, but should satisfactorily complete the training program. The franchisee may offer and render janitorial services to commercial customers only within the area(s) in which the Coverall Support Center, through which the franchisee has purchased the franchise, conducts business. The franchisee must provide all services and products Coverall prescribes. In keeping with Coverall standards, the franchisee may not provide unauthorized services or products.

Estimated Number of Units: 8,000

Investment Tables:
Initial Investment 
Name of Fee Low High
Initial Franchise Fee $11,250 $11,250
Initial Equipment and Supply Package $1,261 $2,235
Banking, Business License, Corporate Filings, and Permits $175 $475
Office Supplies and Equipment $0 $100
Apparel $0 $100
Misc. Pre-Opening Costs $0 $200
Additional Funds (4 months) $314 $3,400
General Liability Insurance (monthly) $58 $351
Franchise Owner On the Job Accident Insurance 2.4% of monthly Gross Dollar Volume for the first shareholder or member owner, plus $15.00 per month for each additional shareholder or member owner
Automobile Insurance $1,200 $3,000
Worker's Compensation Insurance $11.88 – $22.52 per $100 of payroll dollars incurred by the franchised business
Vehicle $225 $900
ESTIMATED TOTAL $14,519 $48,001
Other Fees
Type of Fee Amount
Royalty 5% of Gross Dollar Volume.
Support Fee 10% of Gross Dollar Volume.
Initial Equipment and Supply Package $1,261 - $2,235
General Liability Insurance $116- $351 monthly
Coverall Accident Insurance Program 2.4% of Gross Dollar Volume for the first shareholder or member owner, plus $15.00 per month for each additional shareholder or member owner.
Non-Conviction Janitorial Fidelity Bond or Alternative Non-Conviction Janitorial Fidelity Bond $5.95 or $11.45
Direct Deposit Fee $9.95
National Account Customer Retention Percentage, or another portion, determined at the time the customer is accepted or serviced.
Operating Advance Fee Up to 10% of the amount advanced.
Special Services Finder's Fee A one-time fee per service of 20% of total Special Services contract price.
Sales and Marketing Fee for Additional Business As published and revised from time to time in the Franchise Owner Policies and Procedures Manual, not to exceed 5.0. Presently, 3.6 times one month's billing of the additional volume.
Bid and Negotiation Fee A one-time fee as published and revised from time to time in the Franchise Owner Policies and Procedures Manual.
Franchise Transfer Fee A one-time fee as published and revised from time to time in the Franchise Owner Policies and Procedures Manual.
Customer or Business Owed Administrative Transfer Fee 10% of the customer Regular Service Volume, not to exceed $500, or 10% of the dollar amount of Business Owed, not to exceed $500, will be assessed to cover administrative costs if customers or Business Owed are transferred.
Audit Fee Cost of the Audit, will vary.
Liquidated Damages $500 per day.
Attorneys' Fees and Costs Will vary.
Indemnification Will vary.
Franchise Application Fee $75
False Documentation/Information Fee Up to $200

The above information has been taken from the FDD of Coverall. Year of FDD: 2015

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